The Janus Face of Innovation: Global Disparities and Divergent Options

This article examines how unequal access to AI innovation creates systemic challenges for developing countries. While developing nations contribute significantly to AI development through data annotation labor, they face limited access to advanced AI technologies and are increasingly caught between divergent regulatory approaches from democratic and authoritarian tendencies. I argue this challenge entails new institutional mechanisms for technology transfer and regulatory cooperation, while carefully balancing universal standards with local needs. In turn, good practices could help developing countries close the deepening gap of global technological divides, while ensuring responsible AI development in developing countries. However, instead of reasoning about this puzzle, current debates on AI development reflect an alarmist attitude, ranging from national security concerns to domestic commercial competition among billion-dollar tech startups. This stems from a race among political and commercial actors to be the first in the AI market. However, such acute competition can lead to critical unintended spillovers for developing countries, which lag behind in AI innovation. With their growing populations and economies, developing countries will need AI-enhanced tools in many sectors for their social infrastructure and services.